Rises in property taxes across the country will wipe out gains from this month's Budget.

A comprehensive study by the Irish Independent reveals a third of all homeowners are going to be hit with higher property tax bills after their local councils increased rates by between 1.5pc and 10pc.

The hikes come as the taxpayer's spending watchdog says there is a lack of accountability around council spending.

Councils get €2bn a year yet eight of them have increased their property tax rate for next year. The hikes in property tax will kick in next January, at the same time as promised cuts to the USC will come into force.

Public Spending Minister Paschal Donohoe has warned fellow ministers he has a very limited amount of money.

Social Welfare Minister Leo Varadkar says he will need more money if he is to give €5 extra to pensioners, as demanded by Fianna Fáil.